NIRSAL: Africa’s Company Paying Billions To Reduce Borrowers Interest Rate 

 

 

NIRSAL, one of the most outstanding Government Company in Africa with a focus on agricultural loan, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, is paying billions to reduce borrowers interest rate. 

 

NIRSAL, a company which has not spent up to 10 years in Nigeria, has paid out over N1.64 billion to reduce the effective interest rate for borrowers. 

 

With a good credit history within a short period of time, NIRSAL Plc, it was gathered, has also facilitated the flow of over N73 billion into Nigeria’s Agro Processing industry.

 

NIRSAL Managing Director, Aliyu Abdulhameed, while rolling out the achievements of the company said they have also create a strong connection with Nigeria’s Agricultural Value Chain (AVC) and AVC-linkage to commercial bank finance.

 

Abdulhameed said the N73 billion flow into NIRSAL was from various sources.

 

The NIRSAL sources, Abdulhameed, mentioned deposit money banks, development financiers, private equity investment firms and other financial institutions.

 

 

Abdulhameed mentioned other  beneficiaries of NIRSAL Plc finance-facilitation to include pre-upstream, upstream and downstream AVC operators. 

 

He said operators involved in Inputs Production and Supply, Mechanization Service Provision, Primary Production and Logistics that collaborated with NIRSAL are benefiting. 

 

“In carrying out its mandate of creating a stronger linkage between segments of Nigeria’s Agricultural Value Chain (AVC) and subsequent AVC-linkage to commercial bank finance, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) has facilitated the flow of over N73 billion into Nigeria’s Agro Processing industry to date from various sources, including deposit money banks, development financiers, private equity investment firms and other financial institutions.

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“NIRSAL Plc strategic support to Agro Processors which operate within the midstream segment of the AVC creates a profit-driven ecosystem in which farmers in the upstream AVC segment have a reliable market in the form of Agro Processors who offtake farmers’ produce, add value and satisfy consumer demand in the downstream AVC segment NIRSAL Plc’s support comes at a time in which developing economies are increasingly shifting from only producing raw materials to both production and value addition for increased economic activity, bolstering Foreign Exchange earnings and widespread social development,” Abdulhameed said. 

 

Abdulhameed said NIRSAL CRG is the core product of NIRSAL Plc used to share agribusiness-related credit risks with commercial banks and financiers by up to 75 per cent, depending on the segment.

 

“By protecting financiers and investors from possible losses in a credit transaction, NIRSAL Plc has built up their confidence to lend to players in the Agric sector, a sector once widely considered as a no-go area in finance circles.

 

“Backed by the NIRSAL CRG, farmer groups and agribusinesses which before the introduction of the NIRSAL CRG, had found it difficult to secure loan approvals from commercial banks, now enjoy smoother approval processes for the loans they require to expand their operations, increase their profits and enhance their livelihoods.

 

“To provide further support to Nigeria’s farmers and agribusinesses, NIRSAL Plc, through its Interest Drawback (IDB) scheme, goes the extra mile to reward diligent borrower behaviour through discretionary rebates of up to 40 per cent of interest paid on NIRSAL CRG-backed agribusiness loans,” Abdulhameed added.

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